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Obama's Stimulus Plan Heads to Senate

$819 Billion Economic Rescue Bill Won Passage in House Tuesday

By ANDREW TAYLOR
,
AP
posted: 307 DAYS AGO
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WASHINGTON (Jan. 29) - President Barack Obama's economic stimulus legislation is headed for the Senate after a surprisingly partisan vote in the House in which Republicans united in opposition and 11 mostly conservative Democrats defected.
Obama hailed his recovery plan, saying it would "save or create more than 3 million new jobs over the next few years."
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During Senate debate next week, the measure is expected to pick up at least some GOP support. But Obama's hopes of changing Washington's partisan culture went unmet despite the popular president's separate high-profile meetings on Capitol Hill on Tuesday with House and Senate Republicans.
The $819 billion measure has attracted criticism from Republicans and, privately, from some Democrats for spending billions on Democratic favorites like education despite questions as to whether these expenditures would actually create new jobs.
But with unemployment at its highest level in a quarter-century, the banking industry wobbling despite the infusion of staggering sums of bailout money and states struggling with budget crises, Democrats said the legislation was desperately needed.
The House plan largely reflects Obama's desires, but after zero GOP support, he suggested the House plan was hardly perfect.
"I hope that we can continue to strengthen this plan before it gets to my desk," Obama said.
The 244-188 House vote registered 177 Republicans unanimous in opposition.
"We don't need to have everything Republicans want, but we at least have to feel good enough that the bill actually will grow the economy, create jobs so it's just not a massive spending bill," said Sen. John Ensign of Nevada, as several Senate conservatives lambasted the measure at a Thursday news conference.
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A Presidency Begins
As President Barack Obama nears the 100-days mark in his presidency, he has a 69 percent approval rating, according to a new Washington Post-ABC News poll. Here, he arrives at Andrews Air Force Base to play golf on Sunday. Click through the gallery to see more moments from the first months of Obama's presidency.
Jason Reed, Reuters
Jason Reed, Reuters
"This is about spending money we don't have for things we don't need," added Sen. Tom Coburn, R-Okla.
Still, Democratic leaders remain confident that they will gain at least some GOP support, starting with moderates such as Olympia Snowe and Susan Collins of Maine, who supported parts of the bill in committee earlier this week.
"I am confident that we are going to get Republicans to vote (for) our bill," said Majority Leader Harry Reid, D-Nev. "If we don't, it's not our fault."
Tens of billions of dollars would go to the states, which confront deep budget cuts of their own. That money marks an attempt to ease the recession's effect on schools and poor people receiving Medicaid health coverage. There's also money for housing weatherization, school construction, road building and other provisions. There are big investments toward Obama's campaign promise of creating jobs that can reduce the nation's dependence on foreign oil.
The centerpiece tax cut calls for a $500 break for single workers and $1,000 for couples, including those who don't earn enough to owe federal income taxes. There are also tax breaks for businesses making investments in equipment and renewable energy production.
The House vote marked merely one of several steps for the legislation, which Democratic leaders have pledged to deliver to the White House for Obama's signature by mid-February.
Already a more bipartisan — and costlier — measure is taking shape in the Senate, and Obama personally pledged to House and Senate Republicans in closed-door meetings on Tuesday that he is ready to accept modifications as the legislation advances.
Democrats had already dropped provisions that Republicans had mocked, including money to resod the National Mall and expand family planning programs.
The Senate bill contains a plan that would cost approximately $70 billion to make sure that about 24 million mostly middle-class taxpayers don't get hit by the alternative minimum tax. Although welcome by many lawmakers, the move wouldn't do much to boost the economy since the AMT "patch" is expected anyway later in the year if it doesn't pass now.
Reid said he is noncommittal about whether the AMT patch is included in the bill, but he promised the matter will be addressed later in the year if it isn't now.
Copyright 2009 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.
2009-01-28 07:56:30

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President Barack Obama\'s expansive and expensive plan to jump-start the economy is all but certain to clear its first hurdle when the Democratic-controlled House votes on a $825 billion version that melds new spending and tax cuts.